Comparing Acadia Realty Trust (NYSE:AKR) and EastGroup Properties (NYSE:EGP)

Acadia Realty Trust (NYSE:AKRGet Rating) and EastGroup Properties (NYSE:EGPGet Rating) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Institutional and Insider Ownership

89.7% of EastGroup Properties shares are owned by institutional investors. 2.8% of Acadia Realty Trust shares are owned by insiders. Comparatively, 1.5% of EastGroup Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Acadia Realty Trust and EastGroup Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acadia Realty Trust 0 1 4 0 2.80
EastGroup Properties 0 6 3 0 2.33

Acadia Realty Trust currently has a consensus target price of $19.83, indicating a potential upside of 39.67%. EastGroup Properties has a consensus target price of $189.80, indicating a potential upside of 24.88%. Given Acadia Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Acadia Realty Trust is more favorable than EastGroup Properties.

Profitability

This table compares Acadia Realty Trust and EastGroup Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acadia Realty Trust 9.81% 1.26% 0.65%
EastGroup Properties 47.89% 12.77% 6.34%

Dividends

Acadia Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 5.1%. EastGroup Properties pays an annual dividend of $4.40 per share and has a dividend yield of 2.9%. Acadia Realty Trust pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EastGroup Properties pays out 85.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust has increased its dividend for 1 consecutive years and EastGroup Properties has increased its dividend for 10 consecutive years.

Volatility & Risk

Acadia Realty Trust has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, EastGroup Properties has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Earnings & Valuation

This table compares Acadia Realty Trust and EastGroup Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acadia Realty Trust $292.50 million 4.61 $23.55 million $0.34 41.76
EastGroup Properties $409.48 million 16.17 $157.56 million $5.14 29.57

EastGroup Properties has higher revenue and earnings than Acadia Realty Trust. EastGroup Properties is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

EastGroup Properties beats Acadia Realty Trust on 10 of the 17 factors compared between the two stocks.

About Acadia Realty Trust

(Get Rating)

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual – Core Portfolio and Fund – operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.

About EastGroup Properties

(Get Rating)

EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.

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